Leaders of BP and all of the deep water oil
companies would do well to read a recent article in
ChiefExecutive.net written by
Ralph Jacobson and Alfred A. Marcus. The authors say that in many organizations
it’s not the problems that get them into trouble, it’s the paradoxes. They describe
the difference in this way:
Problems
may be simple or complex, but once an effective solution is implemented, the
problem is solved. For example: Should we build a new plant? Extend our current
product line? Hire a new vice president? Partner with another organization?
Paradoxes, on the other hand, are the hard core contradictions in organization
life that cannot be resolved—they must be vigilantly balanced.
Problem
solving follows a predictable pattern: Highlight an issue, gather the facts,
investigate causes, formulate solutions, and implement the answer. The
objective is to gain control. If we fail we cast blame on others and ourselves.
But what happens if there are issues for which solutions are non-existent? Here
are some examples: Should we…
·
Focus on
the short or long-term?
·
Invest in
new business initiatives or maximize profits from existing businesses?
·
Centralize
operations or decentralize them?
·
Hold
individuals accountable for results or teams?
I suspect that BP and the other oil companies look at an oil leak as an isolated problem to be managed when it occurs. Rather, they should manage the paradox: compliance with too many rules and regulations can stifle production of oil while compliance with too few can result in loss of life and environmental disaster. This is an inevitable contradiction in the oil production industry that doesn’t have a solution. It requires a constant balancing of the demand for safety with the demand for productivity. And an awareness of the Law of Unintended Consequences.
